Correlation Between Swedbank and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both Swedbank and Flexion Mobile at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Swedbank and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and Flexion Mobile PLC, you can compare the effects of market volatilities on Swedbank and Flexion Mobile and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Swedbank with a short position of Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Flexion Mobile.
Diversification Opportunities for Swedbank and Flexion Mobile
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swedbank and Flexion is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC and Swedbank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Swedbank AB are associated (or correlated) with Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of Swedbank i.e., Swedbank and Flexion Mobile go up and down completely randomly.
Pair Corralation between Swedbank and Flexion Mobile
Assuming the 90 days trading horizon Swedbank AB is expected to generate 0.42 times more return on investment than Flexion Mobile. However, Swedbank AB is 2.37 times less risky than Flexion Mobile. It trades about 0.07 of its potential returns per unit of risk. Flexion Mobile PLC is currently generating about 0.0 per unit of risk. If you would invest 17,093 in Swedbank AB on September 1, 2024 and sell it today you would earn a total of 4,287 from holding Swedbank AB or generate 25.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. Flexion Mobile PLC
Performance |
| Timeline |
| Swedbank AB |
| Flexion Mobile PLC |
Swedbank and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and Flexion Mobile
The main advantage of trading using opposite Swedbank and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank position performs unexpectedly, Flexion Mobile can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Flexion Mobile will offset losses from the drop in Flexion Mobile's long position.| Swedbank vs. Svenska Handelsbanken AB | Swedbank vs. Nordea Bank Abp | Swedbank vs. Telia Company AB | Swedbank vs. Tele2 AB |
| Flexion Mobile vs. Upsales Technology AB | Flexion Mobile vs. JLT Mobile Computers | Flexion Mobile vs. USWE Sports AB | Flexion Mobile vs. White Pearl Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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